volkswagen

Volkswagen’s big push into EVs (electric vehicles)

Per this Bloomberg article, “Volkswagen AG secured 20 billion euros ($25 billion) in battery supplies to underpin an aggressive push into electric cars in the coming years, ramping up pressure on Tesla as it struggles with production issues for the mainstream Model 3.”

“The world’s largest carmaker will equip 16 factories to produce electric vehicles by the end of 2022, compared with three currently ... plans to build as many as 3 million of the cars a year by 2025 is backstopped by deals with suppliers including Samsung. LG, and Contemporary Amperex Technology for batteries in Europe and China.”

“In total ... plans to purchase about 50 billion euros in batteries as part of its electric-car push, which includes three new models in 2018 with dozens more following. Volkswagen’s battery plans compare to Tesla’s $17.5 billion worth of purchase obligations as of last year, including $15.4 billion in deals through 2022, primarily related to buying lithium-ion cells from Panasonic, according to a recent filing.”